System z Software Pricing at IBM Enterprise 2014

DancingDinosaur must have sat through more of David Chase’s presentations on System z software pricing than anyone who doesn’t actually buy System z software. And still it seems impossibly complicated. The problem is the many different and changing circumstances under which a mainframe shop will use its System z. It speaks to IBM’s willingness to try to accommodate almost any use case for the mainframe while trying to be fair and still make a buck.

The last time DancingDinosaur wrote on mainframe software pricing it looked at IBM’s z/OS discounts for mobile transactions. It generated considerable interest. Well, there is more on mainframe software pricing at IBM Enterprise2014, Oct. 6-10 in Las Vegas. If you are paying workload pricing, you will want to check out these sessions:

IBM System z Software Pricing Overview by David Chase, who has spoken on this at numerous conferences and manages to make it understandable. This session introduces the software pricing options available for IBM’s zEnterprise and System z servers. It covers a variety of Monthly License Charge (MLC) metrics, including the newest ones: Advanced Workload License Charge (AWLC) and Advanced Entry Workload License Charge (AEWLC). It also introduces the IPLA “one-time charge” pricing and how it differs from MLC. Although the primary focus is on z/OS pricing, these pricing concepts also apply to z/VSE and z/TPF. If your organization is not taking advantage of these programs, you probably are over-paying for mainframe software.

Introduction to Sub-Capacity Pricing and Sub-Capacity Reporting Tool, again by David Chase. If your shop decides to adopt sub-capacity pricing for System z software, use of the Sub-Capacity Reporting Tool (SCRT) will be required whether you run z/OS, z/VSE and/or z/TPF. Attend this session to understand what the SCRT is, how it works, how to use it and how to interpret the output of the tool, the Sub-Capacity Report. This session also covers the planning steps for successful implementation of SCRT and discusses the end-to-end implementation process of collecting the required SMF data, running SCRT, reviewing the reports, and submitting them to IBM.

IBM System z Sub-Capacity and the SCRT Report by David Chase, of course. This session goes a step beyond the session above. Sub-capacity pricing for System z software is the way most customers achieve the optimal price performance available to them. But this means that the way your system is configured and used is very likely to have an impact upon the software charges you pay, and use of the Sub-Capacity Reporting Tool (SCRT) will be required. Attend this session to understand how SCRT works beyond the introductory level, how to use it, how to interpret the output of the tool (the Sub-Capacity Report), and most importantly, what options you have to tune your system to influence your monthly software charges.

Software Licensing for Distributed Linux Middleware on IBM System z by David Chase, clearly the public face of IBM pricing. Many people understand how sub-capacity software licensing works for z/OS and z/VSE. Less well known—IBM also offers sub-capacity licensing for distributed Linux middleware when it runs on System z. Attend this session to understand how the Passport Advantage virtualization and sub-capacity licensing rules work in a Linux on System z environment, especially when you are using IFL engines running under the control of z/VM.

Mainframe software licensing is maddening and has little to do with what attracts people to enterprise computing. As a result, mainframe people stay away from it, leaving it to lawyers and the folks in purchasing, who may be even less prepared to tackle the subject than you. Big mistake. Once you are aware of how it works you can arrange workloads to ensure the lowest price. BTW, if you bring in a name brand consultant for advice on reducing mainframe data center costs, the first thing they check are your software invoices. Skip the consultant; bring your questions to David Chase’s sessions at Enterprise 2014. It will pay for your trip.

Also, don’t miss three evenings of live performances: 2 country rock groups, Delta Rae and The Wild Feathers and then, Rock of Ages. Check out all three and more here

Alan Radding is DancingDinosaur. Look for me at Enterprise2014. You can follow this blog and more on Twitter, @mainframeblog. Find Alan Radding on Technologywriter.com.

One Response to “System z Software Pricing at IBM Enterprise 2014”

Alan, I received an invitation to attend, and I have to admit that it was enticing (anything the happens……). Mike and I decided there was so little content that would be important to our line of business that we both took a pass. He has just completed a VERY arduous, and not so smooth, permanent move from Wellesley MA to Rye NH, so he was in no mood to put up with more of the many theatrics that IBM has become more prevalent these several years. And as a ex-IBMer of over 4 decades I have seen it all and occasionally contributed.

I look forward to your reporting on all the important events, both on the Power and z side and whatever else is noteworthy. BTW, I knew David and benefited from his thorough knowledge – probably the only true expert on the arcane MLC pricing models. (My last job was in System z Pricing.)